Bangladesh Inks LNG Deal with Excelerate

Bangladesh on Thursday signed a deal with Texas-based Excelerate Energy to build its first floating terminal for importing liquefied natural gas (LNG) as it looks to ease chronic energy shortages.

The floating storage and regasification unit (FSRU) terminal at Moheshkhali Island in the Bay of Bengal will be able to handle 5 million tonnes of LNG per year, Istiaq Ahmed, chairman of the state-run Bangladesh Oil, Gas and Mineral Corporation, said at a signing ceremony in Dhaka.

Excelerate will develop the terminal by the first quarter of 2018 and operate it for 15 years, he said.

The terminal will have berthing and mooring facilities and a daily regasification capacity of at least 500 million cubic feet.

The government is in talks with Qatar to import LNG.

Reporting by Ruma Paul